inakihernandez wrote:
The cost C, in dollars of producing x units of a certain commodity is given by the formula C(x) = 10,000 + bx + ax^2 where a, and b are constants. What is the value of a?
(1) The cost of producing 500 units is $15.833.
(2) The cost of producing 1,000 units is twice the cost of producing 500 units.
Given: The cost C, in dollars of producing x units of a certain commodity is given by the formula C(x) = 10.000 + bx + ax^2 where a, and b are constants.
Asked: What is the value of a?
(1) The cost of producing 500 units is $15.833.
15.833 = 10,000 + 500b + 250000a
Since b is unknown, a can not be found out
NOT SUFFICIENT
(2) The cost of producing 1,000 units is twice the cost of producing 500 units.
10,000 + 1000b + 1000000a = 2 (10,000 + 500b + 250000a)
10,000 + 1000b + 1000000a = 20,000 + 1000b + 500,000a
10,000 = 500000a
a = 10,000/500,000
SUFFICIENT
IMO B
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